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Why are you changing your pricing?

Last Updated: May 08, 2017 10:59AM EDT

Our business is built on delivering high-value services at a low cost. The pricing model we’ve had to date has supported the new features we’ve built over the years: Tax-Coordinated Portfolio™, Tax Loss Harvesting+™, RetireGuide™, better advice through external accounts, automated rebalancing, and more.

All of these features are designed to seek higher returns, but they also increase our trading and maintenance costs. In order to cover these costs, we made the decision to update our pricing to a flat rate of 0.25% for the Digital plan. We’ve had a tiered pricing model for four years, and we’ve learned that this flat rate will cover our costs, and still fund future innovation. For some customers, this update means that their fees will stay the same or go down. But for others, this update means that their fees will increase. This was not an easy decision, and we recognize your frustration as a result.

This pricing change will allow us to build features that our customers want, but that we don’t have today. It will allow us to continue to deliver high-value, low-cost services, so that we can help you seek the highest returns you deserve.

If, for any reason, you are not completely satisfied with your Betterment account, we will do everything we can to make it right, up to and including waiving Betterment's management fees for the next 90 days. Learn more about our Satisfaction Guarantee.

Unless otherwise specified, all return figures shown above are for illustrative purposes only, and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market circumstances.

Brokerage services provided to clients of Betterment LLC by Betterment Securities, an SEC registered broker-dealer and member FINRA/SIPC.
Investments: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Betterment's charges and expenses. Betterment's internet-based services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our see our Form ADV Part 2 and other disclosures. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. See full disclosures for more information. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Betterment is not registered. Market Data by Xignite.